Please enable JavaScript.
Coggle requires JavaScript to display documents.
The Conceptual Framework
purpose:
assist IASB to develop and revise its…
The Conceptual Framework
purpose:
- assist IASB to develop and revise its standard
- assist entities to develop consistent acc policies when no std applies to particular transaction or other event, or when a std allows a choice of acc policies
- assists all stakeholders to understand and interpret the std
-
-
CH6- Measurement
-
- Historical cost
- Current value (FV, value in use, fulfilment value and current cost)
Fair value: the price that would be received to sell and asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Factors to consider in selecting a measurement basis:
- nature of information provided by the basis
- must be useful; relevant & faith.rep
- cost constraint & enhancing QC
-
-
CH1- The objective of general purpose financial reporting
- to provide financial information abt the reporting entity that is useful to existing and potential investors, lenders and other creditors in making decisions abt providing resources.
Users base their expectations of returns on their assessment of:
- the amount, timing and uncertainty of future net cash inflows to the entity
- mgmt's stewardship of the entity's resources
-
-